Arbitrage - page 21

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Yurixx:

Arbitrage - the purchase or sale of a financial instrument and the simultaneous opening of an opposite position in a related market in order to profit from a small price discrepancy between markets.

Currency arbitrage - a transaction to buy one or more foreign currencies and then sell them in order to profit from differences in exchange rates over time or due to differences in exchange rates in different markets.

No comment.

I think the discussion was not so much around the question of whether it is arbitrage or not, but around the question of how a fair price is defined.
After all, it is the difference in price from the fair price that constitutes the source of profit and the opportunity for arbitrage here.

And in the end, despite Reshetov's silence, it was sorted out. So what difference does it make now whether it corresponds to the term or not?
Excuse me, but in which post did it become clear how a fair price is determined? I missed something.
 
maloma1:

No comment.

I think the discussion was not so much about whether or not it was arbitrage, but rather about how a fair price is determined.
After all, it is the difference in price from fair price that constitutes the source of profit and the opportunity for arbitrage here.

And in the end, despite Reshetov's silence, it was sorted out. So what difference does it make now whether or not it corresponds to the term?
Excuse me, but in which post did it become clear how a fair price is determined? I missed something.
A fair price is a price at which it makes no sense to buy or sell anything. The volume of buying or selling is given in the formula (by source):

double dt = (money / Ask - com) * experts / (experts + 1);

if the volume (dt) is positive, we buy; if it is negative, we sell (but we substitute Bid instead of Ask price when selling). Correspondingly, if the volume is zero, then it is a fair price

k * (money / rightprice - com) = 0

where: k = experts / (experts + 1)

since k is not equal to 0, because experts are at least 1, everything but k can be equal to zero, i.e. the second part of the product

money / rightprice - com = 0

hence

com = money / rightprice

and consequently, the fair price is

rightprice = money / com
 

:-)))

 

This is from Reshetov:
''Note for the especially gifted: all parameters for each EA are set once before it is started and are not changed during autotrading - constants. (The current price at the time of setting an EA is not the current price at any other time. It is the starting price to determine where the quotes went before the first contract for the instrument was opened. "

thanks

and the rest seems to be a mess:

"For the second contract, the starting price will be the opening price of the first contract. For the third the second and so on and so forth).''


Here's a couple of pictures for all of us not particularly gifted ones
explaining what beginPrice is



or another example




 
corner_h:

For all of us who are not particularly gifted, here are a couple of pictures
explaining what beginPrice is

This simple truth has been explained to some "lost" comrades, but it seems to be useless. Apparently some people have not only an infinite amount of capital, but also an infinite amount of time, during which they are ready to wait when the market returns (1-2 years of waiting in the drawdown with a probability of getting a margin call is apparently the normal situation for this strategy).
Thanks for the pictures anyway! Only I'm afraid they will not change anything in the opinions of the parties either...
 
If that's the case, corner_h, then it's not worth wasting time analysing this EA in terms of sustainability...

P.S. Although, I admit, the situation here is far from as unambiguous as with the single-currency one.
 
solandr:
corner_h:

For all of us who are not particularly gifted, here are a couple of pictures
explaining what beginPrice is

This simple truth is basically what some "misguided" comrades here are trying to explain, but apparently it's all to no avail. Apparently some people have not only an infinite amount of capital, but also an infinite amount of time, during which they are ready to wait when the market returns (1-2 years of waiting in the drawdown with a probability of getting a margin call, it seems to be a normal situation for this strategy) ;o).
Thanks for the pictures anyway! Only I'm afraid they won't change anything in the opinions of the parties either...

Good evening!
I most likely belong to the "Lost Comrades". Such pictures have been drawn of me as well. And still don't you think that if we slightly tweak the code to limit the number of orders with a negative sign ( at the moment), before returning to the right point, we can reduce the drawdown. Or update beginPrice from time to time. (In 30 per cent of all Expert Advisors you can adjust to them, and not bad at all). And you gave an example on one chart. What if we look at the linked charts and then calculate the drawdown? Maybe it will be in the red (most probably), but we may survive the drawdown. I like Expert Advisors because they do not require any unnecessary changes, everything is visible right away. This is the simplicity of theory and no tricks (maybe with the exception of a very scientific reasoning).
 
Paha писал (а):

Or update beginPrice from time to time.
Which I have done. I update this parameter at the beginning of each month. The drawdown has decreased, the quality has improved, but for one pair, as I cannot put it on the forward test yet.
Although I think it makes sense to bind beginprice not to time but to price trend. At the moment I'm searching for the tool most suitable for this purpose. There are a lot of levels, etc.
 
What will change when running the Expert Advisor on several currencies at once? The deviation will increase, i.e. the risk of losing a deposit will increase. It is possible that losses in one currency pair will be compensated by profits in another one. However, it is also possible that losses in one currency pair will be combined with losses in another one and the margin call will come earlier than it was expected. Therefore, do not expect that the multi-currency EA will save a loss-making one.

Tell me more specifically about this EA - how does it differ froma martingale? According to the charts it looks like it does not.
 
Paha:
And yet, don't you think that by tweaking the code a bit to limit the number of orders with a negative sign ( at the moment), before returning to the right point, we can reduce the drawdown.
And also reduce EA earnings.
And there's no telling what would be better - to play Forex without the risk of margin call (with a small drawdown) or just to put money in the bank.
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